EU CCP Recovery and Resolution Framework

Summary

A new EU framework for the recovery and resolution of central counterparties (CCPs) to ensure financial stability without taxpayer bailouts.
10 22.01.2021
Other
economy
social policy
administrative law
public administration
business and competition
public finance and budget policy
financial institutions and credit

Key points

  • The regulation introduces a unified EU-wide framework for managing the failure of central counterparties.
  • Central counterparties are required to maintain detailed recovery plans to address financial distress without public support.
  • Resolution authorities must prepare specific plans to manage a CCP's failure while maintaining its critical functions.
  • Authorities are granted specific tools, including the ability to sell business parts or convert debt into ownership shares.
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